As SSESSMENTS.COM noted, Rupiah depreciation has served a firm footing for local PS prices but placed an Indonesian trader in a dilemma. On the week starting June 29, the trader reportedly has received July delivery offers for GPPS Injection and HIPS Injection from an Indonesian PS producer with a remarkable increment of $100/ton on the month-on-month comparison. Following the increment made by the producer coupled with local currency depreciation, the trader decided to offer both cargoes to their customers in Rupiah denomination at IDR1,000,000-1,500,000/ton ($67-103/ton) higher than last week’s levels.
In spite of being able to prop up the prices, the trader is rather worried about the currency depreciation considering the weak domestic demand. Citing that the local currency depreciation has brought Indonesian buyers to the sidelines. At the same time, buyers also prefer to monitor the currency movement further before making procurement decisions. Speaking of the demand, the trader further added to SSESSMENTS.COM that the overall sales for home appliances and food packaging in the domestic market are recorded slow this week.
